Government implements 14% Advance Tax on Internet Connections Across Pakistan

It feels like only yesterday that the government repealed the 19.5% Internet Tax on Punjab while still enforcing it in the KPK and Sindh region. It seems that the government has taken it upon themselves to enforce yet another tax, but this time a federal tax. This means that all regions of Pakistan are now bound to pay this tax.

While the newly imposed tax which has been imposed falls under as a Withholding Tax (WHT), this at least gives consumers the relief of reclaiming these at the time of filing taxes. Though the number of taxpayers in Pakistan is in low numbers as it is. So if you are a form filling citizen, you can expect a reclaim, otherwise, you are out of luck.

Almost like the previous tax, any connection that has a monthly bill greater than Rs 1,000 will have to pay Rs 140 extra, the value of course changes based on your total bill.

The residents of Sindh and KPK have to bare with the brunt of the taxes, they have to put up with the previously imposed 19.5% Government Sales Tax (GST) along with a 14% Advance tax, A total hit of 33.5% tax for using the internet.

It is still unclear if mobile companies will adjust this tax to mobile data usage or not, the issue is said will be tackled at a later time due to the bill being unclear about mobile internet. While mobile phone users already bare a 14% Advance Tax from loads (retailer / card), the telco’s use this tax for their services. This could mean that this tax would also cover mobile phone internet data plans as well.

What are your thoughts on the newly imposed tax? Let us know in the comments section.

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